Genting Malaysia still in talks with US tribe to recover RM1.77b notes

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KUALA LUMPUR (Sept 14): Genting Malaysia Bhd (GENM), which had subscribed to promissory notes issued by the Mashpee Wampanoag Tribe in the US in 2016 for an integrated gaming resort development in the US, said it is still deliberating the appropriate course of action for its investment in the promissory notes, as well as its recoverability.

"This includes a legislation being introduced in the US Congress which, if passed, will entail the US US Department of Interior (DoI) to reaffirm the land in trust for the benefit of the tribe," GENM said in a filing with Bursa Malaysia today.

The group’s total investment (including accrued interest) in the promissory notes amounted to US$426.3 million (RM1.77 billion) as at June 30, 2018.

On Sept 7, DoI had issued a decision concluding that the tribe did not satisfy the conditions under the Indian Reorganisation Act that allow the Tribe to have the land in trust for the integrated gaming resort development.

"The development of the project was stalled pending further court developments and/or actions by relevant governmental authorities," said GENM.

The group added that it will make the necessary announcement on further material development of the matter in due course.

GENM shares closed up 9 sen or 1.85% at RM4.96 today, with 4.12 million shares done, bringing a market capitalisation of RM28.06 billion.